Pattern Day Trade Rule
I'm new to trading and to play around with I will open a small account with ,500. The problem with this that I want to be a quite active trader,so I can make more profit from this small amount. But the problem is Pattern Day Trade Rule.From finra.org
The rules adopt the term "pattern day trader," which includes any margin customer that day trades (buys then sells or sells short then buys the same security on the same day) four or more times in five business days, provided the number of day trades are more than six percent of the customer's total trading activity for that same five-day period. - See more at: www.finra.org/investors/day-trading-margin-requirements-know-rules#sthash.1Qj9Gkbd.dpuf
I wanted to ask if selling and buying the same stock is 1 or 2 trades? I mean is entering a position or exiting is considered as a trade? Or a trade is a combination of entering and exiting? Because I'm quite confused if I will be able to swing trade a couple times week for example Will I be able to buy a stock lets say on Monday and sell it on Tuesday and buy it again on lets say Thursday and sell it on Friday?
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I would suggest following your quote and having a read of the web page supplied, that buys then sells or sells short then buys (the same security on the same day) four or more times in five business days, ...
So it is a two way transaction that counts as 'one'.
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